What is the range for the Entrance Fee required to be paid to Best Western, and what does this fee cover?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
the Board but the prospective Member does not accept the conditions of approval, the $4,000 Impact Study Fee will not be refunded.
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- All prospective Members must complete an Application for Membership for a hotel and pay a $4,000 Evaluation Fee and an Affiliation Fee, the amount of which will depend on the number of rooms at the Property. Please note, if you are a new Member purchasing your Membership from an existing Member, you will be charged a transfer fee in lieu of an Entrance Fee, which will equal 50% of our then current Entrance Fee. If a prospective Member's Application for Membership is either (i) presented to the Board by the Application Deadline and the Application for Membership is not approved or (ii) not presented to the Board by the Application Deadline due to the actions of the prospective Member, the entire Affiliation Fee will be refunded. The Affiliation Fee otherwise becomes non-refundable at the time of signing the Members
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, prospective members must pay several fees, including an Evaluation Fee of $4,000 and an Affiliation Fee. The Affiliation Fee is structured as $45,000 for properties with 50 rooms or less, plus an additional $200 for each room exceeding 50, up to a maximum of 1,000 rooms. This fee structure means that the Affiliation Fee will vary depending on the size of the hotel property.
For new members acquiring their membership from an existing member, a transfer fee is charged instead of the standard Entrance Fee. This transfer fee is equivalent to 50% of the current Entrance Fee. The Affiliation Fee is generally non-refundable once the Membership Agreement is signed. However, there are exceptions: the entire Affiliation Fee is refundable if the Membership Application is not approved, or if the application is not presented to the Board by the Application Deadline due to Best Western's actions.
In addition to the Affiliation Fee, new prospective members have the option to contribute to an impact study by paying an Impact Study Fee of $4,000. If the membership application is approved, this Impact Study Fee is credited towards the Affiliation Fee. However, the Impact Study Fee is non-refundable if the application is not presented by the deadline due to the prospective member's actions, or if the application is approved but the member does not accept the conditions of approval.
These fees cover the costs associated with processing the membership application, conducting necessary evaluations, and affiliating the new hotel with the Best Western brand. The structure of these fees reflects the resources and efforts Best Western invests in ensuring that each new member meets the brand's standards and contributes positively to the overall system. Understanding these fees and their conditions is crucial for prospective members to make informed decisions about joining the Best Western franchise system.